Nigeria has 12,500 GW of installed generation capacity, being largely dependent on hydropower and fossil (gas) thermal power sources; 12.5% and 87.5% respectively. Although it is important to note that currently only 3,500MW to 5,000MW is typically available for onward transmission to the final consumer. Based on this scenario the country’s energy sector could be deemed as being in crisis, with the extensive losses attributable to non-availability of the installed capacity and a very high occurrence of significant technical and non-technical issues through the power supply value chain. The supplied electricity is delivered to Nigerians connected to the grid, though these customers suffer from extensive power outages a situation that results in annual consumption of electricity per capita being amongst the lowest in Africa, estimated at less than 150 kWh. Against this backdrop a significant number of businesses operational in the country possess standby generators, statistics on this captive generation capacity are not readily available however estimates are as high as 14-20 GW.
In response to this situation the Government of Nigeria in 2013 completed an extensive nine year-long process of power sector reforms centred on the privatization of the country’s main generation and distribution assets. In addition, to tackle the supply and distribution crisis, fifteen (15) government owned generation and distribution companies were sold to private owners in 2015.